House Blocks Federal Reserve from Issuing Digital Currency

The House of Representatives voted to block the Federal Reserve from creating a central bank digital currency (CBDC), with bipartisan support from three Democrats and all Republicans. The bill, led by House Majority Whip Tom Emmer, aims to prevent the federal government from regulating cryptocurrency and ensure digital currency policy reflects American values of privacy and free market competitiveness. Federal Reserve Chair Jerome Powell has downplayed the likelihood of creating a CBDC, while some Democrats argue the bill could hinder U.S. financial innovation and the global primacy of the U.S. dollar.